B&B's "run on the black"

[Jongleur]

Hi - Jongleuse here

At a do I attended last week, the conversation got around to B&B's done by the English (and French no doubt!). I really don't want to offend anyone by suggesting that anyone does this, but the topic of taxes and revenue cropped up along with the number of Brits doing B&B's "on the black".

It seems that there are some people who are a) converting properties to B&B's thereby creating additional bedrooms or putting in pools and b)running bed and breakfast places year round without actually disclosing the revenue received on their yearly French tax forms. B&B's are popular as they are very simplified in terms of a business.

I presume that the group involved in the discussion (all French, apart from little me) knew some English people doing this. As they explained, the problem with creating additional rooms, pools etc (aside from any necessary declarations de travaux required as well as the new pool rules) is that they affect the tax d'habitation you have to pay. This of course is true with any building works on any property, where habitable rooms are created. Then there is the question of adequate insurance. As for not declaring the revenue, this runs a serious risk of hefty fines (upto 45,000 euros) and/or imprisonment!!

B&B's are a useful way to gain income, but please don't be tempted to add to the list of the Brits (who seem to be targeted at present) who are doing it "unofficially". Claiming you are British and don't understand doesn't work with the authorities. The French agreed that sooner or later these owners will get caught and none of them had a problem with "ratting"!! Perhaps it may be different with their own countrymen!!

Sorry if that upsets anyone. Just a bit of advice given by well meaning French people (a mayor as well!!).

regards
Jongleuse

[Alan]

> As they explained, the
>problem with creating additional rooms,
>pools etc (aside from any
>necessary declarations de travaux required
>as well as the new
>pool rules) is that they
>affect the tax d'habitation you
>have to pay.

hi
anybody that does any kind of work on the black needs there heads testing, as sooner or later they will be found out.

we had a new pool built last year which needed to be approved.we had a letter earlier from the marie this year to see if the work had been completed. our Taxes Foncieres this year has increased by nearly 300 euro for having the pool installed.our mayor told us the taxe d'habitation would not increase as the addtional bedrooms were already considered part of the house and was already taxed on.
we issue all geusts with invoices and i keep a dairy of all booking, it is also very important to insure that you have the correct insurance cover.
alan

[ckenway]

When we completed the work on our house (although you can never really complete there is always something to do) I went to see the mayor for two reasons. Firstly to inform him we have 'lost' a bedroom which is now a bathroom. Secondly to ask how I register for tax.

I was rather lucky because lo and behold somebody did talk to him along the lines of "those bloody English running that B&B, they probably don't pay tax". My mayor retorted that "Oh yes they do they were only in here the other week asking how to register.
As a foreigner in another country it is VERY important to play by their rules and to be seen to be doing so. Everyone in our village knows who is on the black and who isnt. They even told me bout our French plumber (cowboy is not enough to describe him) working on the black which put me in a spot as I genuinely didnt know even though I got a receipt.

My wife and I will declare all our earnings because we think its difficult enough to answer the tax for questions let alone defend ourselves if we didnt pay.

Personally I think its more likely to be the natives especially those in very rural communities where income is so low and they know the system although I am sure there are some foreigners who think they know it all and will never get caught.

Chris

[0MariaddMMyyyy0Falseen-USTrue]

As a owner of a gite and chambre d'hote and hopefully another gite after a successful year I fully agree with you about informing the tax office. When I tried to find information on this forum and by asking fellow brits...there was little help which gave me the impression that very few gite or b/b owners actually declared their income.

maria
http://www.le-tilleul.com